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McDonald’s and franchisees don’t see eye-to-eye on all-day breakfast

<> on July 23, 2015 in Fairfield, California.<> on July 23, 2015 in Fairfield, California.
A McDonald's 'Big Breakfast' is displayed at a McDonald's restaurant on July 23, 2015 in Fairfield, California. Photograph by Justin Sullivan — Getty Images

McDonald’s might be pleased with its roll-out of an all-day breakfast menu, but its franchisees don’t seem to agree.

According to a report by Japanese finance company Nomura, released on Thursday, which surveyed 29 operators at more than 200 locations, the implementation of the new menu has been a disaster, according to Business Insider. Many franchisees complained to Nomura that the all-day breakfast menu slowed service and dragged down quality.

“In small stores, the problems are vast with people falling over each other and equipment jammed in everywhere,” one franchisee said, according to the New York Post. In some cases, franchises have had to hire extra employees to ease the transition, the report said.

A large part of the reason why McDonald’s (MCD) resisted implementing all-day breakfast for so long was because of a concern that franchisees would struggle to juggle both menus simultaneously. But now that the transition has started, McDonald’s is all smiles. “The successful launch of All Day Breakfast proves that when we listen to and respond to our customers and align around a great execution plan, we will grow our business and take share,” McDonald’s U.S. President Mike Andres said in a letter to franchisees. On Wednesday, McDonald’s hit the highest point for customer perception for the past two years, in large part thanks to the McMuffin, CNBC reported.